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A year ago I tried asking, but I didn't get definitive answer. So I will try again now.

I want to spend ALL the balance from a channel via the lightning network. Normally the protocol won't allow that as it requires a local reserve. But if the channel is simultaneously closed this is no longer a problem. Does the lightning network support such a transaction? Spend all and close simultaneously.

Spend all and close simultaneously does not exist AFIAK. But nowadays a lot of implementations support the option for 0 reserve channels. We just added it to LDK!

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then question becomes "can we re-negotiate the reserve to 0 along with the preimage of spending the local balance"?
in this case it would need to happen simultaneously somehow.

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Exactly. Leaving 0 reserve has negative impact on your channel partner, but spending and closing doesn't.

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I don't really see the use case you're looking for here

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I do 😎

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